11.115
Safekeeping property.

(a)
A practitioner shall hold property of
clients or third persons that is in a practitioner’s possession in
connection with a representation separate from the practitioner’s
own property. Funds shall be kept in a separate account maintained
in the state where the practitioner’s office is situated, or
elsewhere with the consent of the client or third person. Where the
practitioner’s office is situated in a foreign country, funds shall
be kept in a separate account maintained in that foreign country or
elsewhere with the consent of the client or third person. Other
property shall be identified as such and appropriately safeguarded.
Complete records of such account funds and other property shall be
kept by the practitioner and shall be preserved for a period of
five years after termination of the representation.

(b)
A practitioner may deposit the
practitioner’s own funds in a client trust account for the sole
purpose of paying bank service charges on that account, but only in
an amount necessary for that purpose.

(c)
A practitioner shall deposit into a
client trust account legal fees and expenses that have been paid in
advance, to be withdrawn by the practitioner only as fees are
earned or expenses incurred.

(d)
Upon receiving funds or other property in
which a client or third person has an interest, a practitioner
shall promptly notify the client or third person. Except as stated
in this section or otherwise permitted by law or by agreement with
the client, a practitioner shall promptly deliver to the client or
third person any funds or other property that the client or third
person is entitled to receive and, upon request by the client or
third person, shall promptly render a full accounting regarding
such property.

(e)
When in the course of representation a
practitioner is in possession of property in which two or more
persons (one of whom may be the practitioner) claim interests, the
property shall be kept separate by the practitioner until the
dispute is resolved. The practitioner shall promptly distribute all
portions of the property as to which the interests are not in
dispute.

(f)
All separate accounts for clients or
third persons kept by a practitioner must also comply with the
following provisions:

(1)
Required records. The records to be kept
include:

(i)
Receipt and disbursement
journals containing a record of deposits to and
withdrawals from client trust accounts, specifically
identifying the date, source, and description of each
item deposited, as well as the date, payee and purpose
of each disbursement;

(ii)
Ledger records for all client
trust accounts showing, for each separate trust client
or beneficiary, the source of all funds deposited, the
names of all persons for whom the funds are or were
held, the amount of such funds, the descriptions and
amounts of charges or withdrawals, and the names of all
persons or entities to whom such funds were
disbursed;

(iii)
Copies of retainer and
compensation agreements with clients;

(iv)
Copies of accountings to
clients or third persons showing the disbursement of
funds to them or on their behalf;

(v)
Copies of bills for legal
fees and expenses rendered to clients;

(vi)
Copies of records showing
disbursements on behalf of clients;

(vii)
The physical or electronic
equivalents of all checkbook registers, bank
statements, records of deposit, prenumbered canceled
checks, and substitute checks provided by a financial
institution;

(viii)
Records of all electronic
transfers from client trust accounts, including the
name of the person authorizing transfer, the date of
transfer, the name of the recipient and confirmation
from the financial institution of the trust account
number from which money was withdrawn and the date and
the time the transfer was completed;

(ix)
Copies of monthly trial
balances and quarterly reconciliations of the client
trust accounts maintained by the practitioner; and

(x)
Copies of those portions of
client files that are reasonably related to client
trust account transactions.

(2)
Client trust account safeguards. With
respect to client trust accounts required by paragraphs (a)
through (e) of this section:

(i)
Only a practitioner or a
person under the direct supervision of the practitioner
shall be an authorized signatory or authorize transfers
from a client trust account;

(ii)
Receipts shall be deposited
intact and records of deposit should be sufficiently
detailed to identify each item; and

(iii)
Withdrawals shall be made
only by check payable to a named payee and not to cash,
or by authorized electronic transfer.

(3)
Availability of records. Records required
by paragraph (f)(1) of this section may be maintained by
electronic, photographic, or other media provided that they
otherwise comply with paragraphs (f)(1) and (f)(2) of this
section and that printed copies can be produced. These
records shall be readily accessible to the practitioner.

(4)
Lawyers. The records kept by a lawyer are
deemed to be in compliance with this section if the types of
records that are maintained meet the recordkeeping
requirements of a state in which the lawyer is licensed and
in good standing, the recordkeeping requirements of the state
where the lawyer’s principal place of business is located, or
the recordkeeping requirements of this section.

(5)
Patent agents and persons granted limited
recognition who are employed in the United States by a law
firm. The records kept by a law firm employing
one or more registered patent agents or persons granted
limited recognition under § 11.9 are deemed to be in compliance
with this section if the types of records that are maintained
meet the recordkeeping requirements of the state where at
least one practitioner of the law firm is licensed and in
good standing, the recordkeeping requirements of the state
where the law firm’s principal place of business is located,
or the recordkeeping requirements of this section.